Securitas (OM:SECU B) Valuation Analysis Following Recent Share Price Gains

Securitas (OM:SECU B) shares have shown resilience in recent trading, rising 3% over the past week and gaining 6% year-to-date. Investors appear to be watching the steady annual growth in net income and revenue with interest.

See our latest analysis for Securitas.

Momentum is quietly building for Securitas, as the stock shakes off recent market volatility to notch a 5.65% year-to-date share price return and a robust 73.3% total shareholder return over the past three years. Investors seem to be growing more optimistic about the company's steady growth and profitability, as reflected in its recent gains.

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But after this recent run, is there still value to be found in Securitas shares, or have the market’s expectations for future growth already been baked in, leaving little room for those seeking a true buying opportunity?

Most Popular Narrative: 1.5% Undervalued

The latest narrative points to a fair value for Securitas shares just above the current closing price, hinting at a market that is nearly in balance, but still harboring a modest upside. The small discount suggests investors and analysts are weighing recent earnings momentum against slightly tempered growth projections.

Securitas is capitalizing on rising urbanization and increasing global wealth by focusing investments into technology and data-driven security solutions. This positions the company to capture premium, higher-margin contracts in a growing addressable market, which should drive sustained revenue and margin expansion.

Read the complete narrative.

Curious how this strategic upgrade translates into a near-fair value call? The key factors are ambitious profit targets and a sector-leading margin recovery. Discover the precise numbers backing these bold assumptions when you read the full narrative.

Result: Fair Value of $146.27 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, persistent challenges in Securitas' key growth segments or unexpected portfolio exits could quickly undermine the current valuation outlook.

Find out about the key risks to this Securitas narrative.

Build Your Own Securitas Narrative

If this perspective doesn't quite match your own, or you have insights of your own to follow up, you can explore the numbers firsthand and create your own view in just minutes, all with Do it your way.

A great starting point for your Securitas research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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